INTERNATIONAL
India’s textile exports remained flat at $40 billion in the last fiscal, as compared to $41.4 billion in 2014-15, Union Minister Santosh Kumar Gangwar said here on Thursday. “Despite poor market conditions, the textile industry did well as compared to other sectors on export front. Our textile exports remained at $40 billion in 2015-16,” the Minister of State for Textiles said after the inauguration of Technotex 2016 conference here. In 2014-15, textile exports stood at $41.4 billion. Exports during last fiscal were, however, lower than the target of $47.5 billion set by the government for textile and clothing. The subdued trend in exports was due to recessionary trends in Europe and the US markets, industry experts said. About the technical textile sector, he said the country saw a huge growth potential in the sector. “This (technical textile) sector is still at its nascent stage but it has been recognised as the fastest-growing segment of the textile sector by the government and industry stakeholders alike. These functional textiles are used for their inherent performance enhancement properties in various fields, ranging from protective services, steel manufacturing, construction, agriculture, sports, nation security, food security etc,” he added.
Growth rate
Mr Gangwar pointed out that the growth rate of the technical textile sector was expected to be much higher. “Based on past trends of growth and estimated end-user segment growth, the Working Group on Technical Textiles for the 12th Five Year Plan (FYP) has projected the market size at Rs1.58 lakh crore ($28.82 billion) for the year 2016-17 with a growth rate of 20 per cent,” the Minister added. According to the Minister, Technotex exemplifies the immense potential for trade and investment between India and foreign countries in technical textile sector. Maharashtra Chief Minister Devendra Fadnavis, who was present, said the technical textile sector in the country also had tremendous potential for generating employment. “It is consistently being looked upon for the future growth of the country. While the (state) government has taken concrete initiatives in the area, the industry players also need to bring in large-scale innovations,” he said. The three-day exhibition and international conference Technotex 2016 has attracted over 150 exhibitors, looking to showcase a varied collection of technical textiles from the various subsectors of the industry. Gujarat and Karnataka are participating as partner states in the event.
SOURCE: The Hindu
The technical textiles sector in the country has tremendous growth potential for generating employment opportunities and is consistently being looked upon for the future growth of the country, Maharashtra Chief Minister Devendra Fadnavis said here on Thursday. He was speaking at the inauguration ceremony of the fifth edition of India’s premier exhibition “TECHNOTEX-2016″ on the theme “Technical Textiles: Towards Future”.
The three-day event, showcasing exhibitions, seminars and conference and being held at the Bombay Exhibition Centre in Goregaon from April 21-23, is jointly organised by the ministry of textiles and the Federation of Indian Chambers of Commerce and Industry (FICCI). Fadnavis, along with state Textiles Minister Santosh Kumar Gangwar, released “i A-TUFS” software and guidelines, “Textiles Compendium 2014-15″, standards, “Knowledge Report and Technotex 2016 Exhibition Directory,” at the ceremony. (Also Read: RSP will decide if Devendra Fadnavis or Uddhav Thackrey would be next CM: Jankar Shirdi )
A gateway to the technical textile arena, the event bridges the gap between the buyer and seller by facilitating B2B (business to business) and G2B (government to business) meetings. Addressing the gathering, Fadnavis said: “While the government has taken up concrete initiatives in the arena, the industry players also need to bring in large-scale innovations.” ”Maharashtra as a state had and will always actively participate in the initiatives taken up by the government for the further acceleration of the technical textiles in the country,” the chief minister added.
Sharing his vision on the future of technical textiles in India, Gangwar said: “The technical textile sector is still at its nascent stage but it has been recognised as the fastest growing segment of the textile sector by the government of India and industry stakeholders alike.” The working group on technical textiles for 12th Five Year Plan (FYP) has projected the market size to Rs.1.58 lakh crore for the year 2016-17, with a growth rate of 20 percent during the 12th FYP. “I am confident when the global technical textile industry revisits our shores in the next edition of “Technotex 2017″ from May 4-6, the Indian technical textile sector will be one of the most promising sector in the World,” Gangwar stated.
SOURCE: The India
With scorching summer, textile mills need to maintain the ambiance within the mills and also conserve energy. According to industry sources, more than 50 per cent of the mills in the State have humidification plants and, the smaller mills have sprinklers and vents. In the textile units, power consumption by motors, compressors and humidification plants is high. With temperature going up, mills are making more adjustments, running the humidification plants throughout and to full capacity. The units will have to take these measures as workers will not be able to work otherwise within the mills. Further, many of the mills are turning to synthetic yarn and it is essential to maintain the ambiance for quality production. However, these might lead to higher power bill. In an effort to achieve energy conservation, the units are investing in high efficiency motors, automation solutions, etc that are available now, say the sources. Even mills with 10,000 to 20,000 spindles have to modernise and upgrade facilities so that they can control the power costs, improve production quality, have better efficiency, and manage the increase in temperature.
SOURCE: The Hindu
India will become $10 trillion economy and achieve growth rate of 10 per cent by 2032, Niti Aayog Chief Executive Officer Amitabh Kant said on Thursday. The country’s growth rate was 7.6 per cent in 2015—16 and its economy worth $1.7 trillion. In a presentation made during Civil Services Day function attended by Prime Minister Narendra Modi and large number of civil servants, he projected creation of 175 millions jobs and zero per cent of Below Poverty Line (BPL) population by 2032. “Growing at 10 per cent will transform India. India will be a $10 trillion economy with no poverty in 2032,” his presentation reads. The presentation was made on the status of implementation of reports of ‘Group of Secretaries’ formed by the Modi government. A total of eight Group of Secretaries were formed in December last year on focus areas. “These eight groups had officers from different ministries. Further, there were 16 groups of Joint Secretaries who simultaneously worked on their focus areas. We cut across silos so that we can act on the eight themes and act as agent of change,” Mr. Kant said. The groups has decided on sub-themes, Some of its recommendation have been acted on whereas a road map has been suggested for the rest to achieve intended target. Under the sub—theme “accelerated growth”, Mr. Kant said there will be Rs two lakh crore worth investment in roads and railways in Financial Year 2017. It intends to complete 10,000 km of road project during the same period. LPG connections to below poverty line women through Pradhan Mantri Ujjwala Yojana and promotion of medical tourism are other action points suggested by the group under “health and pharma” category.
SOURCE: The Hindu
India Inc. is largely optimistic about the performance of the economy in coming six months, leading to higher sales and profitability on the back of uptick in the company order-book and capacity utilization, according to a latest Assocham Bizcon Survey. The optimism is reflected both at the levels of firms and the industry, for April-September period even though the feel good factor is yet to convert into increased appetite for fresh investment and better employment opportunities, noted the survey conducted by Assocham Economic Research Bureau (AERB). As many 57.1 per cent of the respondents in the Assocham Bizcon Survey across different industry segments shared a sense of optimism about the economy for the coming months. At the firm level, 61.9 per cent respondents feel confident about the same.
Breaking the first half of the fiscal 2016-17 into two quarters, a big chunk of the respondents (66.7 per cent) feel the immediate April-June 2016 quarter sales value would pick up. Similarly, there would be an improvement in the profitability as well, the survey noted. “Since the industry has been operating much below its capacity for a long period, there would still be a lag for fresh investment while a pickup in increased employment would still be away,” Assocham President Sunil Kanoria said, sharing a sense of optimism reflected in the latest round of the Bizcon Survey. The flip side of the survey is that a large part of India Inc. still feels that the present state of economy and its undercurrent has not changed much qualitatively as compared to the previous six months. This is true in the case of profitability at the industry and firm level. Since there has not been much improvement in the employment situation, the wage costs for the industry have remained stagnant. The majority of the industry (57.1 per cent) feels that in the January to March 2016 quarter, there has been no change in terms of the expenditure incurred on wages. A big chunk of the industry respondents (47.6 per cent) feel that the wage costs will not change in the April to June 2016 quarter.
Likewise, in the face of current subdued demand, in January to March 2016 quarter, 76.2 per cent of industry feels that there is no change in terms of the expenditure incurred on electricity and fuel cost. Again the majority of the industry (57.1 percent) expects that there will be no change in the electricity and fuel cost in April to June 2016 quarter as well. The Assocham Bizcon Survey took into account nine key parameters which include sales, profits, inventories, investments, employment, cost of raw material, electricity and fuel cost, wages and cost of credit.
SOURCE: Fibre2fashion
Prime Minister Narendra Modi's Make in India plan and employment generation could become key in deciding India's stand at free trade agreement (FTA) negotiations, as suggested by experts and people involved in such talks. Going beyond the conventional aim of trade expansion, the government may also look at linkages between trade and investment while negotiating FTAs. In a brainstorming session last week among think tanks, former and current trade negotiators and the commerce department led by Minister Nirmala Sitharaman, it was agreed that one cannot have rigid positions in trade negotiations and that the negotiators must have something in hand to negotiate. "There must be clear articulation of red lines before negotiations and a larger political mandate is necessary for taking decisions on key matters," said an official who was present in the meeting organized by foreign ministry-run think tank Research and Information Systems for Developing Countries. It, the official said, was a freewheeling chat on trade issues faced by the government. "Experts opined that India's defensive strategy on FTA negotiations will not work," said another official. The issue of non-availability of data in services was also taken up and the need to expand services beyond the realm of IT and related sectors. "We discussed that institutional capacity for negotiations is important, specifically with respect to longer tenure for negotiators," the official said.
As a solution, bringing back former trade negotiators and making majority of trade services officers sit in Udyog Bhawan, the seat of the commerce and industry ministry, was considered. The meeting came a month after the Prime Minister's Office suggested setting up a specialised team to negotiate international trade deals amid concerns that India isn't moving fast enough on its FTAs, by developing expertise and institutional memory like other countries. Senior officials are said to have suggested new ways of reviving WTO's multilateral trading system and staying watchful of the changing trade environment. On boosting exports, the official said while there was no buyer for giving incentives, there was consensus on improving export competitiveness and making businesses sustainable.
SOURCE: The Economic Times
India and the European Union have not taken any decision on restarting the formal negotiating rounds on the Broad-based Trade and Investment Agreement (BTIA), said Tomasz Kozlowski, Ambassador of European Union to India. “There has been a discussion that the talks on BTIA will continue. Our position is very clear that we are keen on completing the BTIA but it has to be a very comprehensive trade agreement,” Kozlowski told BusinessLine. He said modern day trade agreements are much more “broad-based” and not confined only to tariffs and standards. “We should be very clear that we will not be able please all sectors. It goes for both the EU and India. But such agreements have strategic importance. This has to be seen from that point of view of achieving overall balance, investment flows, technology transfer and people to people exchanges,” he added.
During the 13th India-EU Summit, held after a gap of four years on March 31, both sides had decided to “further” the negotiations, according to the joint statement. The formal round of negotiations on the BTIA last took place in 2013. It has been stuck on India’s demand for getting more access into the European market for its professionals under services trade. EU, on the other hand, has been demanding tariff elimination in wines and spirits and auto sector. Kozlowski also highlighted that some laws of the 28 nations of the EU are formulated by the European Parliament. He said the EU’s trade policy falls under the European Parliament’s ambit and not the EU member States. “There is no trade policy in general (in the EU). There is one EU trade policy. Of course, the formulation of this policy is a very complicated process with the involvement of the European Council, European Parliament and European Commission but there is only one European trade policy. That’s why only one institution which is in position to negotiate free trade agreements with our partners is the European Commission on the basis of the mandate given by the European Council,” Kozlowski added. He said even without the BTIA, bilateral trade between has reached nearly €100 billion, but admitted that the pact will unleash the full potential.
SOURCE: The Hindu Business line
The next round of negotiations for the proposed mega trade deal, Regional Comprehensive Economic Partnership (RCEP), would be held in Australia from Sunday, Commerce and Industry Minister Nirmala Sitharaman said. "We have made our offers for goods and services. The RCEP negotiations are happening in detail. India participating in the next round beginning April 24," she said in a tweet. The Regional Comprehensive Economic Partnership (RCEP) is a mega trade deal which aims to cover goods, services, investments, economic and technical cooperation, competition and intellectual property rights. The 16-member bloc RCEP comprises 10 Asean members (Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos and Vietnam) and their six free trade agreement partners -- India, China, Japan, South Korea, Australia and New Zealand.
Meanwhile in a letter to Commerce Secretary Rita Teaotia, Software Freedom Law Centre has expressed concern over certain issues relating to patents in the area of computer programmes in the RCEP pact being negotiated. Certain proposed clause in the agreement "could result in floodgates being opened for patents in the field of software," it said. "We request you to protect the interests of the domestic software industry and startups, to ensure that the proposed clause on patents in the area of computer programmes is excluded and that no clause that runs contrary to the Patents Act is included in the final version of the agreement," it added. Not-for-profit medical charity Doctors Without Borders (MSF) too said that access to affordable medicines could be severely restricted for millions of people around the world under the current proposals in the RCEP. "Proposals in the RCEP negotiations are trying to introduce intellectual property measures far tougher on access to medicines than what is required under international trade rules." it said in a statement.
SOURCE: The Economic Times
Pakistan feels it has potentially lost a great opportunity to build strategic trade ties with regional economies owing to Afghanistan's preference for a trilateral agreement with India and Iran via Chabahar port, a media report said. The report carried in 'The Express Tribune' said that Pakistan is set to lose lucrative trade deal with Afghanistan as Kabul appears to have lost interest in it and is eager to develop an alternative route via Iran which is close to being finalised. Iran, Afghanistan and India on April 11 finished negotiating the details of the trilateral transport and transit pact, meant to provide legal framework to operate trade corridors via Iran's Chabahar port, the report said. This development could possibly downgrade Pakistan's importance from being the primary facilitator of India-Afghanistan trade to a mere back-up, meaning that Pakistan has potentially lost a great opportunity to build strategic trade ties with regional economies, it said.
Officials in the Ministry of Commerce told the the paper that Afghan authorities were slower in responding to the proposed bilateral and transit trade related matters and it seemed that they were least interested towards Pakistan and would rather devote their time and energy towards materialising the trilateral agreement with Iran and India. "All this happened because Pakistan refused to include India in the Pak-Afghan transit trade agreement," the official claimed. Afghanistan insists that India must be part of the transit trade agreement in the same way as Pakistan uses Afghan soil to reach Central Asian states, the report said. The officer cited a draft agreement pertaining to the Preferential Trade Agreement (PTA) that the ministry had sent months ago. He insisted that there has been no response from Kabul. "We have learnt that they have shared the draft agreement with their security agencies for clearance, which is surprising for us," the official said. Moreover, the maiden meeting of the Pak-Afghan Joint Business Council (JBC) has not been held even after its establishment around five months ago to discuss issues and to devise strategies for enhancing bilateral trade, it said. The JBC was supposed to hold its first meeting in February last year, but it could not take place.
SOURCE: The Economic Times
The government today approved signing of a Memorandum of Understanding with Bhutan on technical cooperation in the field of capacity building, benchmarking and bilateral exchange in infrastructure engineering. The MoU aims at taking forward India-Bhutan friendship treaty and provide an umbrella for educational, scientific and technical research and environment protection. "The Union Cabinet chaired by Prime Minister Narendra Modi today approved signing of an MoU between India and Bhutan on technical cooperation in the field of capacity building, benchmarking and bilateral exchange in infrastructure engineering. "The MoU is furtherance to India-Bhutan friendship treaty signed in 2007 and will provide an umbrella for educational, scientific and technical research and environment protection which are also stated aim of the India-Bhutan foundation established in August 2003," an official release said.
Through this Memorandum of Understanding (MoU), the Central Public Works Department (CPWD), a construction major under the Urban Development Ministry, will gain experience in construction of roads on hills which will be helpful in Jammu and Kashmir, Himachal Pradesh, Uttarakhand and various States of North-East Region. The CPWD also expects to garner some road construction projects in Bhutan, the release said. During the PM's visit to Bhutan in June 2014, the two sides agreed to continue close coordination and cooperation in areas relating to their national interest, it noted. There is already ongoing Hydro Power Cooperation between the two countries which provides an "exemplary template for mutual cooperation", the release said.
SOURCE: The Economic Times
Pakistan’s textile exports dropped 8.15 percent to $9.363 billion in the first nine months of the current fiscal year, official data showed on Thursday as value-added sector is still feeling the pinch of waning foreign orders and liquidity constraints. The Pakistan Bureau of Statistics (PBS) said the country exported $10.194 billion of textile merchandises in the same period of the last fiscal year. Raw cotton exports decreased 46.97 percent to $75.326 million in July-March 2015/16 over the same period of July-March 2014/15. Cotton yarn exports amounted $989.033 million in the period under review, down 32.45 percent over the comparable period. Cotton cloth fetched $1.685 billion in July-March 2015/16, falling 10.14 percent over the same period a year ago. The PBS data showed that exports of knitwear and bed wear declined 2.1 and 4.13 percent to $1.749 billion and $1.505 billion, respectively in the July-March period over the comparable period. Exports of readymade garments, however, improved 4.2 percent to $1.609 billion in the first nine months.
The State Bank of Pakistan (SBP) said the local textile industry is enduring a waning demand curve in its export destinations. The industry is also not adapting to the changing consumer preferences, the SBP said in its quarterly economic review. “Following the addition of more efficient spindles by India, China and Bangladesh, it is not possible for our textile sector to compete internationally,” it said. “To catch up with competitors, textile industry in Pakistan needs to invest heavily in balancing, modernisation and replacement.” The PBS data further showed that food sector, which is also major foreign exchange earner for the country, also went on the downward path. Total food exports decreased 11.59 percent to $3.040 billion in July-March 2015/16. Rice exports dropped 12.34 percent to $1.375 billion. Exports of fish and fish preparations and fruits slid 5.28 and 5.34 percent to $240 million and $356 million, respectively.
In July-March 2015/16, imports declined 4.29 percent to $32.489 billion over the similar period a year earlier, mainly because of a sharp cut in the import bills of petroleum products. Oil import bill shrank 37.24 percent to $5.583 billion in the period under review as international crude prices sank to 12-year lows and are still finding it hard to bottom out. The PBS said imports of fertiliser, insecticides and other agriculture inputs slid 3.76 percent to $5.332 billion in July-March 2015/16 over the similar period a year ago. Auto imports inched down 0.58 percent to $1.904 billion in the period under review. Machinery imports, however, increased 14.05 percent to $6.212 billion in July-March. Of them, power generating machinery imports surged 42.68 percent to $1.332 billion and electric machinery imports rose 51.21 percent to $1.320 billion. Telecom sector imports amounted to $1.047 billion, marginally down 2.18 percent in the period under review. Food imports increased 2.68 percent to $3.938 billion. Imports of textile products shot up 27.59 percent to $2.394 billion. Raw cotton imports climbed 161 percent to $588 million in July-March 2015/16.
SOURCE: The News
President of Mauritius, Dr Ameenah Firdaus Guarib-Fakim has invited the All Pakistan Textile Manufacturing Association (APTMA) to invest in the island nation, according to reports in the Pakistani media. During a meeting with an APTMA delegation, led by its Chairman Tariq Saud in Karachi on Wednesday, the Mauritian President highlighted the huge opportunities available in the technical textile sector in her country which remains unexplored. She said that Mauritius is among the top six countries in Africa, which is recommended to people who wish to relocate. “It is one of the leading states in the African region for ease of doing business and good governance, as per the World Bank Doing Business Survey 2016,” the President said. She suggested that the Pakistani textile entrepreneurs could also take advantage of Mauritius to penetrate the US and European markets. Dr Guarib-Fakim said that her government provides a ten-year exemption from income tax on all income, inclusive of foreign investment under the Mauritian Diaspora Scheme. "There is no minimum capital requirement for the incorporation of a company, 100 per cent foreign ownership is allowed and there is no exchange control for foreign investment," she added. She invited the APTMA chairman to bring a delegation to Mauritius and experience the incentives and facilities provided by their government to the foreign investors. She also asked them to arrange a fashion show of Pakistani textile brand and also showcase products for the firsthand information of the prospective buyers. APTMA Chairman Saud told the Mauritian president that there is a need for close liaison between the business community of the two countries so that the Pakistani business class can explore the Mauritian economy as well as enter the African market. He also invited Mauritian entrepreneurs for joint ventures in Pakistani textile mills.
SOURCE: Fibre2fashion
Federal Minister for National Food Security and Research Sikandar Hayat Khan Bosan, during his meeting an Italian business delegation on Wednesday, said that to achieve better production, duties had already been brought down from 43 percent to 9 percent. However, Pakistan is considering to further decrease import duties on machinery in order to improve production of textiles and other leather apparels. The ministers expressed his desire and resolve to make the agriculture sector modern by facilitating the farmers. This could only be achieved through modern mechanization, and by enhancing the volume of existing bilateral trade and focusing on agricultural commodities. The Italian delegation also showed keen interest in coming to Pakistan in future, and helping the country in advanced farming as Italy was quite advanced in farming, and have a wide range of machinery for the purpose. Bosan has asked the delegates to establish post harvest processing units for pest mitigation and photo-sanitation, hot water treatment plants, vapour heat treatment plants and individual quick frozen facilities. He assured full support for business to business contacts between Italy and Pakistan. Italy is the third largest export destination for Pakistani products in EU, which include textiles, clothing, and leather apparel. In 2014-15, volume of export reached $941.13 million.
SOURCE: Yarns&Fibers
The potential benefits for European jobs and growth of an EU-China Free Trade Agreement are underestimated, according to a study presented today during the EU-China Partnership Conference organised by the Foreign Trade Association (FTA). The FTA represents more than 1,700 retailers, importers and brands to promote and defend free trade and supports their international business by providing information and practical solutions towards sustainability in the international supply chain. The study, which FTA commissioned to the Centre for European Policy Studies (CEPS) revealed that an EU-China trade deal would increase by $200 billion the combined GDP of the EU and China by 2030. This is equivalent to the GDP of Czech Republic. According to the study, a potential EU-China trade deal would impact positively the economic growth of both partners: 1.87 per cent for China and 0.76 per cent for the EU. “The possible benefits in terms of growth and employment from a free trade agreement between Europe and China are substantial. The presented study will serve as an excellent tool to initiate a broader discussion about the future EU - China trade relations. A deep and comprehensive free trade agreement is good for the EU and good for China,” said Christian Ewert, FTA's Director General. The study also showed that EU exports to China, within the framework of a bilateral deal, would maintain more than 2.5 million jobs in Europe, including 1.1 million in Germany alone and another 1.1 million in France, Italy, the Netherlands and the UK combined. It would also boost crucial European sectors exporting to China such as machinery, automotive and electrical machinery, which currently face steep tariffs. The study also notes that a free trade deal could only succeed when China implements reforms, including on state-owned enterprises (SOEs) and opening of public procurement. China's closed public procurement market is a major frustration for EU business interested in the Chinese market. By contrast, Chinese companies routinely obtain public contracts in the EU. A comprehensive and deep trade deal is a perfect 'fit' for today's China, combining reforms and 'openness', whilst the EU can finally pursue the 'logical sequel' in its trade policy vis-á-vis dynamic East Asia, the study said.
SOURCE: Fibre2fashion
As China's GDP growth slowed to 6.7 per cent year on year in the first quarter of 2016, experts said that the country is mildly shifting gears in economic growth, laying more emphasis on structural adjustment and the cultivation of new growth engines, according to a government press release. Li Ping, head of the Institute of Quantitative & Technical Economics at the Chinese Academy of Social Sciences, pointed out that with the growth of China's overall economy and adjustment in industrial structure, China will unavoidably experience a shift from high speed growth to a medium-to-high growth. He added that China is still facing pressures to cut industrial overcapacity with the new growth engine taking shape, hence, lowering economic growth is in accord with the current stage of development. Pan Jiancheng, vice director at the China Economic Monitoring & Analysis Center of the National Bureau of Statistics, said that this year, China stepped up efforts in infrastructure construction, with the Belt and Road Initiative, coordinated development of the Beijing-Tianjin-Hebei area, and the Yangtze River economic belt being put into implementation. Also, efforts will be strengthened to promote cost reduction for supply-side reform and reduce the rate of enterprises' social insurance fund and public reserve funds. All of these moves are expected to have a positive effect on economic growth. This year's government work report urged cultivating new growth engines and accelerating the development of a new economy. Li Zuojun, vice director at the Institute of Resources and Environment at the Development Research Center of the State Council, stressed that supply-side structural reform should be pushed forward to foster new growth engines. While enterprises are the main body of the new economy, reform of State-owned enterprises should also be accelerated, along with reforms on the examination and approval system, commercial system, and price system, which are conducive to the transformation of government functions and could guide enterprises to achieve innovation-driven development, said Li Zuojun.
A recent report on the prospects of the world economy released by the International Monetary Fund raised its growth forecast for the Chinese economy and spoke highly of the measures that China has undertaken for its economic transformation. Li Ping said China's structural adjustment was advanced through a number of vibrant high-tech enterprises possessing new technologies, new mode, new formats, but the capacity scale of traditional industry remains large, so cutting industrial overcapacity could pose a big threat to the economy. Also, the transformation of momentum is yet to be completed and innovation-driven development needs to be strengthened. As for concerns that supply-side structural reforms will bring greater downward pressures on economic operation, Pan Jiancheng said any reforms could bring side effects, while we should focus more on strengthening social policies as support, make plans and preparations, make full use of financial funds, and reinforce regional coordination. Moreover, Li Zuojun said that cutting industrial overcapacity, de-stocking, and de-leveraging should be combined with the cultivation of new growth engines, new industries and new technologies, which can generate the best effect for supply-side reform and will in turn promote economic growth.
SOURCE: Fibre2fashion
